Bank of America gives in on debit card fee

Following an intensense amount of criticism from consumers about a $5-per-month fee it planned to charge customers for its debit cards, Bank of America today gave in and pulled back from the idea.

“We have listened to our customers very closely over the last few weeks and recognize their concern with our proposed debit usage fee,” Bank of America co-CEO David Darnell said in a statement.

The decision came just days after other banks — Chase, Wells Fargo and SunTrust among them — each announced plans to scuttle the fee following market tests that met with stern criticism from their customers.

The move was met with widespread praise among consumer advocate groups who put pressure on Bank of America shortly after it decided on the fee, which wasn’t to begin until the new year.

“Consumers have the power to make the big banks back down from unfair practices if they raise their voices and vote with their feet and their dollars,” said Norma Garcia, manager of Consumers Union’s financial services program. “In the end, Bank of America understood that it risked losing too many valuable customers by charging an unfair debit card fee.”

Others to weigh-in said consumers simply won’t sit back and take it any longer, especially after years of public hearings in Washington exposed the abusive practices by many banks and card issuers.

“Bank of America and its big bank peers are no longer free to fleece merchants and consumers at will,” said Katherine Lugar, executive vice president of public affairs of the Retail Industry Leaders Association. “This outcome is just what consumers deserve, what reform advocates predicted and what we will fight to extend to the credit card market.”

David joined The Denver Post in 1999, his second go-round in the Mile High City. Since then he’s covered a variety of topics – from human services to consumer affairs – most always with an investigative bent. Currently he does investigations and banking.